• Loan amount:AMD 50,000 -2,000,000
• Term: 3-36 months
• Annual interest rate:18-20%
• Effective interest rate: 22.15-29.1 % (AMD)
• Borrower pays a lump-sum fee for provision of loan, at effective tariffs  established by the Organization as of the date of loan disbursement (view details: Tariffs established by the organization )
• Loan interest amount is calculated on outstanding loan balance
• Loan Security: Movable and immovable property and/or guarantee
• Loan and interest rate payments are made by annuity
• Loan is provided noncash or in cashier’s check
• Client’s creditworthiness assessment and credit history are factors considered in making a decision on satisfaction/rejection of loan application – at the moment of applying for or receiving a loan the client should be free from overdue or problematic liabilities
• The borrower’s total overdue payments over the last 6 months should not exceed 30 days
• The maximum ratio of the borrower’s monthly payments and incomes to all loans, (including from other organizations) is set at 60%
• In case the borrower fails to fulfill its obligations, both the particular borrower and other members of the group shall bear liability at the expense of their property and/or other funds.
• The number of guarantors for the loan provision is determined in the following way

Calculation of loan interest rate

Loan interests are calculated on the actual loan balance, considering 365 days in the year. The nominal interest rate of the loan remains unchanged during the entire effective period of the loan.

The annual factual interest rate is calculated by the following formula

Where,

• “A” is the loan amount, (the initial amount of loan provided by the lender to the borrower.
• “n” is the amount f the loan repayment fee,
• “N” is the last payment for the loan repayment,
• “Kn” is the “n”-th amount loan repayment,
• “Pn” is the period between the date of loan issuance and the n-th repayment, expressed with the number of the days,
• “i” is the annual factual interest rate, which can be calculated, if the other details of the equity are known from the loan agreement or otherwise.

Example of calculation of loan interest amounts

Simple example of calculation of a loan interest rate: (Loan amount* interest rate)/ number of months (or days)

Thus, when providing a loan of AMD 2,000,000  at 18% annual interest rate and 36 months of repayment period, the average monthly interest due to payment shall be

AMD =(2,000,000*0.56*0.18*3+2,000,000)/36=72,355

Should be mentioned that the actual amount of monthly interests would depend on the loan repayment schedule, yet not exceed the average amount specified above.

Other fees

• Lump-sum fee equal to 3% of the loan amount, but not less than AMD 3,000

Penalties

• In case of delays of loan interests and/or principle payment, a fine is imposed  at the rate of 0.1% on overdue amount  (overdue loan amount and overdue interest amount), for each day of delay
• At 1% of the amount repaid during no later than six months since the date of signing of the loan agreement.

 Deadlines for the loan approval and provision

The approval for the loan application, and provision of the relevant information to the applicant as well as the loan provision to the borrower is handled maximum within 10 days.

• YOU HAVE THE RIGHT TO COMMUNICATE WITH THE FINANCIAL COMPANY WHICHEVER WAY YOU PREFER: THROUGH POSTAL COMMUNICATION OR EMAIL. THE ELECTRONIC SUBMISSION OF THE INFORMATION IS THE MOST CONVENIENT OPTION. IT IS AVAILABLE 27/7, IT EXCLUDES THE RISKS OF LOSING PAPER_BASED INFORMATION AND ENSURES CONFIDENTIALITY.
• THE COMPANY CAN REQUIRE ADDITIONAL DOCUMENTS OR OTHER INFORMATION FROM THE CUSTOMER BASED ON THE “KNOW YOUR CUSTOMER” PRINCIPLE, DEFINED BY THE RA LAW “ON COMBATING MONEY LAUNDERING AND TERRORISM FINANCING”.
• www.fininfo.am , “ATTENTION: “YOUR FINANCIAL INFORMATION DIRECTORY” IS AND ELECTRONIC SYSTEM, WHICH MAKES IT EASIER TO SEARCH FOR AND COMPARE SERVICES FOR PHYSICAL ENTITIES AND FACILITATES THE CHOICE OF THE MOST EFFICIENT OPTION FOR YOU”.
• LOAN INTEREST RATES ARE BEING CALCULATED BASED ON THE NOMINAL INTEREST RATE. THE ANNUAL REAL INTEREST RATE SHOWS HOW MUCH WILL THE LOAN COST FOR YOU IF YOU COVER THE INTEREST RATES AND ALL THE OBLIGATORY FEES RELATING TO THE LOAN PROVISION AND SERVICE IN A TIMELY MANNER AND BY THE AMOUNT DEFINED.
• IN CASE OF FAILURE TO FULFILL YOUR OBLIGATIONS FULLY OR PARTIALLY, THE CREDITOR SENDS THE DATA TO THE CREDIT REGISTRY AFTER 3 WORKING DAYS, WHERE YOUR CREDIT HISTORY IS FORMED. YOU HAVE THE RIGHT TO GET YOUR CREDIT HISTORY FROM THE CREDIT REGISTRY FREE OF CHARGE ONCE A YEAR.ATTENTION: NEGATIVE CREDIT HISTORY MAY AFFECT YOUR FUTURE ATTEMPTS TO GET A LOAN!
• IN THE EVENT OF FAILURE TO FULFILL OR IMPROPER FULFILLMENT OF OBLIGATIONS, ASSUMED BY THE BORROWER, THE COMPANY TAKES RELEVANT MEASURES TO CONFISCATE AND REALIZE THE COLLATERAL IN THE MANNER STIPULATED BY THE RA LEGISLATION. IF THE AMOUNT COLLECTED FROM THE REALIZATION OF THE PLEDGED PROPERTY IS INSUFFICIENT TO COVER THE COMPANY’S CLAIMS, THE COMPANY SHALL BE ENTITLED TO COMPENSATION FROM OTHER PROPERTY AND/OR FUNDS OF THE BORROWER.

FOR GUARANTORS

• GUARANTOR BEARS THE LIABILITY OF REPAYING THE LOAN. IT MEANS THAT IN CASE THE LOANER PERFORMS HI/HER OBLIGATIONS INCOMPLETELY, OR DOESN’T PERFORM THEM AT ALL, YOU WILL PAY INSTEAD.  THIS WILL AFFECT YOUR CREDIT HISTORY AND YOU MAY BE DEPRIVED OF YOUR OWN PROPERTY.
• YOU WILL BE PROVIDED WITH AN EXAMPLE OF LOAN AND GUARANTEE CONTRACTS, AND A REPAYMENT SCHEDULE.
• THE COMMUNICATION WILL BE CARRIED OUT BY YOUR PREFERRED METHOD.
• YOU WILL BE NOTIFIED ABOUT THE CONTRACT TERM CHANGES 7 DAYS BEFORE.
• IN CASE OF DELAY IN LOAN REPAYMENT, AT THE LATEST ONE DAY LATER YOU WILL BE NOTIFIED ABOUT IT.

THE GUARANTOR HAS THE RIGHT

• TO REQUIRE INFORMATION ON THE OUTSTANDING AMOUNT OF THE LOAN, ANY TIME.
• TO REQUIRE FROM THE LOANER THE COMPENSATE THE INTEREST PAID TO THE CREDITOR FOR THE LOAN, AS WELL AS OTHER LOSSES INCURRED INSTEAD OF THE LOANER.

Documents required for loan provision:

• Loan application
• ID document and social card
• ID document  of the guarantee, social card, and its copies
• If necessary, other documents proving the borrower’s incomes
• Salary reference (if available)
• Filled agreement for making an ACRA credit request, for guarantees